InterGame’s Simon Liddle sat down with Merkur Gaming’s managing director Ralf Markmann at the recent G2E Las Vegas show to discuss the German-based machine manufacturer’s future strategy.
THE threat of damaging new regulations to be imposed upon Germany’s gaming machines market has prompted one of the industry’s leading names, the Gauselmann Group, to turn its attention to developing its business away from its troubled domestic market. Ralf Markmann, the recently appointed managing director of the company’s subsidiary, Merkur Gaming, is the man charged with leading this significant transition.
There can be no doubting the importance of preparing for the new regulations in Germany, nor of Markmann’s grasp of the situation. His task, he explains, is to mitigate the loss of a significant portion of the company’s business there by growing its international interests. This is a strategy the Gauselmann Group has had in place for several years now, proof of which, for example, is its growing influence in the UK AWP market through its acquisitions of adult gaming centre and bingo operator Praesepe and games manufacturer Blueprint Gaming. Under Markmann’s leadership, however, you sense that this will be far a more structured – and aggressive – pursuit.
Gauselmann is, and will undoubtedly remain, a German company, he said, but as the domestic market changes its focus must move to other opportunities.
“I think Paul Gauselmann hired me because he wants some changes; he also sees the risk of focusing on one marketplace only,” Markmann said.
Legislation has already been passed and will come into effect when a grace period granted to the industry comes to an end in 2017. Then, he warned, “you will see lights switch off in many arcades in Germany.”
The German states, or Länder, have proposed the Sixth Order, a joint set of regulations that is expected to have a hugely damaging impact upon the German machines industry. The new regulations relate to machine specifications, the multi-licensing of arcades, opening times and arcade density and, if deemed legal by the EU, could lead to arcade closures and the loss of thousands of jobs.
It is under these circumstances that Gauselmann, through its Merkur Gaming arm, is seeking to diversify so that its business is not so heavily weighted towards the German AWP and arcade market.
Read the full article in the November issue of InterGame
